Powered by MOMENTUM MEDIA
subscribe to our newsletter

Regional bank prices $700m RMBS transaction

One of Australia’s regional banks has successfully priced a $700 million RMBS transaction.

Bendigo and Adelaide Bank said the 'TORRENS Series 2016-1 Trust' RMBS transaction will be upsized from $500 million to $700 million.

The TORRENS Series 2016-1 Trust, which was launched on 8 August 2016, is the bank’s latest mortgage backed securities issue under the TORRENS securitisation program.

NAB was the arranger for the transaction, and joined ANZ, CBA and Macquarie Bank as joint lead managers for the transaction.

The upsized pricing of the RMBS transaction comes after the bank recently reported positive home loan growth over the 2016 year, although record-low rates are beginning to squeeze its margins.

Advertisement
Advertisement

The bank reported underlying cash earnings of $439.3 million over the 12 months to 30 June, a 1.6 per cent increase on the prior corresponding period, and grew its mortgage book by 4 per cent to $39.8 million over the year.

In a trading update, the non-major noted that the RBA’s historic rate cut earlier this month will have an impact on the profitability of its home lending: “August price changes aim to deliver neutral margin outcome following recent cash rate reductions”.

Bendigo’s managing director, Mike Hirst, noted that lending growth accelerated in the second half, with costs well-managed in an “unprecedented low interest rate environment”.

Bendigo and Adelaide Bank only passed on 10 basis points of the RBA’s 25 basis point cut to mortgage customers.

[Related: Bank bolsters distribution but margins under attack]

PROMOTED CONTENT


Regional bank prices $700m RMBS transaction
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

Latest News

Increased property price caps for those purchasing homes using the First Home Loan Deposit Scheme and the Family Home Guarantee from 1 July ...

Despite a tumultuous 12 months for the Australian property market, CoreLogic has reported that house or unit median values ticked over the m...

CBA has sold its Australian general insurance business to South African insurer Hollard Group and entered a 15-year distribution deal. ...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.